Pennsylvania Distance Learning Charter School

“Substantially all of the school's business functions have been contracted to charter choices, inc (cc). Cc performs payroll services , accounts payable services, accounts receivable services, maintains the accounting system of records and reports, federal consolidated grant reconciliations, financial reporting and budgets, financial projections and planning, enters and maintains student data records for billing purposes, prepares district billing using school provided information, and fiscal compliance reporting. The school pays an annual fee of $560 per average daily membership to cc.”

“There are no underlying committees of the governing body.”

“Drafts of the form 990 are distributed to the management company, the board president (john marous), and the board advisor/cpa (john lally), for their review. Hill, barth & king llc prepares the school's form 990. They are available to respond to questions or recommendations as a result of the board review.”

“The board of directors monitors employment and consulting arrangements to ensure that conflicts of interest do not occur in the school. All appointments are asked at the time of interview if they are related to anyone in the organization. Additionally, trustees and the ceo are required to complete a financial disclosure declaration annually. The disclosure form is consistent with the pennsylvania ethics requirements for school board officials.”

“The president of the board of trustees annually evaluates the ceo and uses comparability data to recommend compensation and benefits. The ceo is responsible for recommending salaries for all other employees for trustee approval.”

“Requests for additional information should be addressed to the fiscal officer c/o pennsylvania distance learning charter school, 2100 corporate drive, suite 500, wexford, pa 15090.”

“Contracted services: program service expenses 1,319,711. Management and general expenses 516,968. Fundraising expenses 0. Total expenses 1,836,679.”

“There are no underlying committees of the governing body.”

“During the fiscal year ending june 30, 2015, the school was required to implement gasb 68. This accounting standard required the school to report its proportionate share of the net pension liability of the underfunded cost-sharing multi-employer defined benefit pension plan provided by the commonwealth of pennsylvania. At june 30, 2015, the school reported a liability of $5,542,000 which is reduced by deferred outflows of resources in the amount of $600,168. In recording the liability and deferred outflows, the net assets/fund balances were adjusted by $4,941,832 resulting in a year-end negative balance. The adjustment numbers are an accumulation of multiple previous years liability generation and not all attributed to fiscal year ending june 30, 2015. The fiscal year ending june 30, 2015 was the first year for this adjustment. Each year, the school's proportionate share of the liability will be adjusted. The adjustment will be done in accordance with the accounting standard but will not have an effect on the ongoing cash requirements of the school.”